Having a successful business isn’t just about doing more of what we do well, or doing what we do well even better – it’s about finding out what we should be doing. Now I know there are a bunch of brilliant geniuses out there who can pull this information out of their um, ear, but most of us need to figure out what we should be doing by listening to our customers.
There are some common objections to doing this, and I’ve been assured they have merit. The most common among them is the customers don’t know what they want until we show it to them. Another is customers aren’t nearly as aware of what the technology can do as we are, so we need to show them what’s possible. Assuming you can ignore the sheer condescension of these positions for a moment, just what is it about not listening to customers that we think might be viable?
While I acknowledge that there have been a handful of inventions in history that have transformed consumer behavior, these events are few, fortuitous, and far in-between. The majority of successful innovations have been due to heightened awareness of consumer preferences and desires, and an ability to skillfully meet real emerging needs faster and more effectively than anyone else.
The best thing about meeting customer expectations is that you don’t necessarily have to have more capital, more employees, or better (heck, any) consultants to excel at it! What you do have to be is more aware, and this requires discipline and patience. Here are a few things you can do to stay on top of customer needs and therefore, on top of your competition. The only requirement is that you learn to keep a notebook and pen in easy reach at all times.
1. Keep a list of every time a customer asks for a product or service you don’t offer, or says ‘it would be so nice if you could provide such-and-such’, or mentions something they like about a competitive offering.
2. Every time you are exposed to an innovative service or particularly interesting offer, jot it down. Take a moment to evaluate whether or not there is a comparable opportunity for your own business. If you come up with something, write that down too.
3. Shop a competitor or spend time observing customer behavior. If you’re a retailer, you can probably do this at the mall. But if you’re in another line of business it may be more difficult. Consider subscribing to internet forums that discuss your industry – you may be surprised to discover how candid forum participants are about their business partners. Look for unmet needs and opportunities.
4. Review your notebook constantly, mining it for insights. Something that was completely uninspiring yesterday may be brimming with possibilities today. Develop lists of potential needs – and don’t restrict yourself to what seems rational, simple, or affordable. Consider the usual to the unusual, the obvious to the obscure. Of course you will come up with some ideas that you can’t afford or which are entirely impractical. But you’ll have the ideas! And occasionally, a great idea is so great that you can figure out a way to fund it and have it pay for itself.
5. Once a week (yes, this often – what is more important as a business person than figuring out what you should be doing?) sit down and develop a list of things you could do to meet potential customer needs. Sometimes this process will be very fun and you won’t want to stop, and other times you will have a hard time coming up with ideas. Your goal is not to come up with a brilliant new business innovation once a week. Your goal is to become so skilled at observing your customers and imagining what they might want from you that you come up with a great idea once or twice a year.
Once-great businesses die every day, and at the heart of each business failure is the failure to figure out what they should have been doing. Sales decline? Then they weren’t selling what they should have been selling, or at the price they should have been selling for. Margin decline? Then they weren’t maintaining the differentiation and competitive advantage they should have been to justify maintaining higher prices. Loss of market share? Then they weren’t doing the work they should have been doing to understand what customers wanted, when they wanted it, at the price they were willing to pay for it.
I suspect the primary reason businesses don’t figure out what they should be doing is that they get caught up in the minutia of daily management. We might refer to this as the crime of complacency. The other reason businesses don’t figure out what they should be doing is that they think they already know and do not have to find out from the customer perspective. Let’s refer to this as the crime of hubris. Neither alternative is as satisfying as hitting a business home run. So put that little notebook and pen in your pocket, and prepare to start paying attention.
(c), 2007, Andrea M. Hill
